New accounts show first profit in five years for Bus Éireann

Bus Éireann returned to profit in 2019 after four loss-making years

Bus Éireann has reported a profit for the first time in five years.

Latest accounts show the State-owned bus company recorded a surplus of €2.3m in 2019 following a deficit of €6.4m the previous year.

The company’s latest annual accounts show a major reversal in its financial fortunes after it had suffered large losses over the previous four years, including a loss of €23.7m in 2017.

The figures show that operating revenues at Bus Éireann were up almost €29m to €366.5m in 2019 – an annual increase of 8.6%.

Revenue was boosted by a growth in passenger numbers which were up almost six million to 89.4m – the highest annual total in a decade – with the increase particularly helped by almost 3.5 million additional passengers on provincial city services.

Almost 26.7 million journeys were recorded on Bus Éireann’s urban services in cities and towns like Cork, Limerick, Galway, Waterford and Drogheda – up almost 16% on 2018 levels.

One of its initiatives, which contributed to the growth in passenger numbers, was the introduction of the first ever 24-hour service in Cork between Ballincollig and Carrigaline, which recorded a 70% increase in numbers using the 220 route during 2019.

Bus Éireann, which secured the contract to operate bus services in Waterford in June 2019 after it was put out to tender, reported a 72% growth in passenger numbers after a number of services enhancements in the city.

However, the company said there had also been a worrying increase in the number of accidents, which correlated with an increase in third-party claims against Bus Éireann.

Bus Éireann said its inter-urban Expressway services, which do not benefit from State subvention, also improved their profitability, despite operating in an increasingly competitive market.

The company said Expressway was building for the future and had secured approval for a significant investment in new fleet and ticketing system during 2019.

In addition to increased revenue from fare-paying passengers, the size of the State subvention to Bus Éireann to support Public Service Obligation routes also rose by €5.2m to €58m in 2019.

Under its contract with the National Transport Authority, Bus Éireann operates services on 218 routes across the country.

Separately, it also oversees the carrying of more than 120,000 pupils under the School Transport Scheme every day across 7,000 routes.

School revenues were up almost 10% to €203.5m as the company continued to expand its services in response to greater demand for school transport facilities, especially from children with special needs.

The company said about two-thirds of its €2.3m surplus recorded for 2019 was attributable to its schools and commercial services.